Flow is falling today: what traders are watching

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Flow slides 10.92% today to $0.0571

Highlights

The Flow Community Governance Council has destroyed 87.4 billion counterfeit FLOW tokens onchain, completing the Flow Foundation's security incident response.
This action removes all seized counterfeit FLOW tokens from circulation, finalizing the protocol’s latest asset recovery and remediation efforts.
FLOW trades at $0.0571, well below MA-20, MA-50, and MA-200; persistent seller pressure signals a dominant downtrend and high intraday volatility.

Token burn completion cements recovery as counterfeit supply eliminated

A remediation update confirmed that 87.4 billion counterfeit FLOW tokens created during a prior security incident have been destroyed onchain by the Flow Community Governance Council. This marks the completion of the Flow Foundation's response plan and removes all seized counterfeit tokens from circulation. The event finalizes the asset's latest recovery efforts.

Anton Kharitonov, expert at Traders Union, believes the technical structure for FLOW remains decisively bearish. He notes the absence of any reliable support, with the price retreating below all key moving averages. Kharitonov highlights that despite the destruction of counterfeit tokens, underlying sentiment is still dominated by sellers. He points out that oversold oscillators may hint at a short pause, yet the dominant downtrend and momentum readings reinforce caution. "Any rebound attempt here faces strong headwinds, and for now, capital protection should be the primary focus," Kharitonov concludes.

Viktoras Karapetjanc, expert at Traders Union, sees the completion of the FLOW community's recovery plan as a step that restores confidence in the token. He believes that removing 87.4 billion counterfeit tokens improves long-term fundamentals. Karapetjanc considers the event a positive catalyst for future adoption as governance demonstrates swift, effective action. He expects that, in time, risk appetite may return to the project if sentiment stabilizes. "While the short-term chart is weak, the foundation is now stronger and further growth is just a matter of sentiment recovery," he says.

Parshwa Turakhiya, analyst, observes that FLOW is facing heavy selling pressure and strong negative momentum. He notes sharp intraday volatility and the risk of further downside within the forecasted band. Turakhiya suggests short-term traders should watch for potential stabilization sparked by oversold oscillators, even though the main trend stays bearish. "If a rapid bounce materializes from these extremes, nimble traders might catch sentiment-driven moves, but risk remains elevated on both sides," he comments.

Bearish momentum persists as oversold signals clash with downtrend

For now, dynamic resistance is seen at the Ichimoku Kijun level of $0.0781, while no immediate support from moving averages is present at current levels. Momentum signals are bearish, with MACD showing a strong sell and ADX at elevated levels, confirming a dominant downtrend. Both RSI and CCI indicate oversold conditions on daily and weekly frames, while Stoch RSI signals a strong buy but remains conflicted with other momentum indicators. Bull/Bear Power points to seller dominance intraday. The Awesome Oscillator is neutral and does not reinforce the tone. Today's session is sharply negative, with a 10.92% decline, a small gap down at the open, and the price moving toward the bottom of the day's range, signaling high intraday volatility and continuous pressure after the open. The divergence between oversold oscillators and strong bearish momentum suggests a possibility of short-term stabilization, but the overall tone stays negative.

Last time, analysts noted that Flow remains under persistent selling pressure, trading well below its key moving averages and facing strong bearish momentum as indicated by oversold RSI, CCI, and Stoch RSI readings. Resistance is seen at the Ichimoku Kijun, with the MACD and ADX confirming a robust downward trend and little sign of an imminent recovery.

Source of Data: FLOW Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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